Accounting is complex at the best time, but becomes excessively so when considering the requirements of a medical business as well. Mistakes are going to be made without the right preparation, so arm yourself with the knowledge of how to avoid these three common medical accounting errors.
Medical accounting mistakes happen to nearly everyone.1) Basic human error
Traditional accounting systems give users the opportunity to make simple, human mistakes. An additional zero at the end of a figure can drastically unbalance your books, making it all the more important to ensure that you have a method of reducing such errors.
Solution: You can hire a medical accountant to ensure that such mistakes do not happen – there is only so much time medical professionals have to do the administrative work. You could also utilise software with an automated data feed: This assists with prompt bank reconciliation, which will flush out any data entry error.
2) Losing documentation
Nowadays, there are a number of different online systems for dealing with your accounting. While many businesses have embraced these wholeheartedly, there are still a number that do not see the benefits yet. This is surprising, as there are certain things that pharmacies have to be very particular about when dealing with their accounting, and loss of paperwork could be devastating.
For example, a lack of documentation can mean that you are unable to claim your invoices and receipts when it comes to tax time – no documentation, no claims.
Solution: Try getting your documents onto a cloud-based storage system as soon as you can. Even in the event of natural disaster, you will still be able to access your paperwork.
3) Incorrect entitlement calculations
Knowing who is on leave and how much leave your workforce is owed is integral to planning out a business.
Holidays and leave for even a small number of employees in a standard business can get very complicated. When you throw in the fact that pharmacies and other medical businesses are often open on unusual days, it becomes utterly hectic. Furthermore, casual, part-time and full-time employees all get different entitlements – keeping track of them by yourself becomes an exercise in futility.
Knowing who is on leave and how much leave your workforce is owed is integral to planning out a business, and ensuring that grievances are kept to a minimum.
Solution: Consider implementing an automated payroll system. These systems are far more than just numbercrunchers. They form part of a holistic business development strategy, giving you all the information you need to ensure that you are fulfilling your requirements to both your business and employees.
For more information on medical accounting in Bankstown or Strathfield, get into contact with the team at DBS Accountants. Whether you’re a GP, dentist or pharmacist, we have the expert knowledge to ensure your records are up to date, accurate and tax compliant.